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Netlist

NLST
39
Computer Hardware · Technology
Also trades as: 0K6M.L
Price
$4.01
+0.09 (+2.30%)
Market Cap
$1.34B
Winston Score
39
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 10, 2026 · filings through Jun 27, 2026

Share count rising — dilution

+35.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 225.6M (2021) → 305.9M (2025)

Netlist is a small technology company that makes specialized memory products used inside servers and data centers. Its main products are high-performance memory modules — essentially the chips that help computers store and process information quickly. The company sells to businesses that run large computing systems, including data center operators and enterprise customers.

Netlist earns revenue by selling its memory hardware, but a significant part of its business involves licensing its patented memory technology to other companies. It operates primarily in the United States and competes against much larger memory manufacturers like Samsung and SK Hynix. Netlist has pursued an aggressive patent licensing strategy, and its intellectual property portfolio is central to its competitive position — the company has been involved in multiple high-profile patent disputes with major chipmakers. The key risk is that its financial results depend heavily on the outcomes of ongoing litigation, making revenue unpredictable from year to year.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+163.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+119.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$3M/ year

Declining (-57% vs prior year)

1.9% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

4.1%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~4 months

$31M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Netlist grew revenue 163% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
20.8%
Thin — 20.8% gross margin
Operating Margin
1.2%
Thin — 1.2% operating margin
ROCE
5.0%
Weak — 5.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+129.2%
Fast-growing sales (+129.2% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
-3357%
Weak — only -3357% of profit becomes cash
FCF Margin
-8.0%
Burning cash (-8.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.15
Conservative — low debt load (0.15)
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
N/A
Data not available
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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